Some natural disasters devastate huge amounts of property and assets costing huge amounts of money that I would assume policy holders would want to claim. Maybe I am naive to the huge amounts of profit that insurance companies make, but how do they survive financially?
In: Economics
In the UK there is Lloyd of London and the Lloyds names.
https://en.m.wikipedia.org/wiki/Lloyd%27s_of_London
they generally support the insurance industry by maintaining sufficient reserves to cover risk. The risk is spread accross the industry rather than one firm by virtue of everybody contributing to the fund.
From recollection in the 2008 banking crisis the Lloyds names were asked to increase their contribution due to the losses incurred.
Latest Answers